There has been no shortage of news from Olympia the past week or so. Deadlines for bills to move on or die came and went. A quick look at a few of the bills that have been in the spotlight brings us among other things a proposal to increase the sales tax by one-half cent and the creation and implementation of a state capital gains tax. Now we may well need the sales tax increase, although it is regressive tax and will have a disproportionate effect on lower income residents, it may be the best alternative and should be a temporary remedy not a permanent increase. (Voters will decide this one not the legislature) The proposal for a capital gains tax is a non-starter. Not only would it further expose the state’s revenue stream to the impacts of an economic downturn -- just ask the counties about the effect of plummeting home prices on tax revenues -- it is Pandora’s Box, opening the door to the imposition of a state income tax!
Sen. Ed Murray, D-Seattle, (a proponent of the sales tax increase –capital gains tax combo) wants to increase some B and O tax rates, increase the cigarette tax, extend the beer tax and reduce the sales tax break for cars purchased from auto dealers, among other things. These proposals are just more of the same old thing and most of them are aimed directly at and are detrimental to the business community.
Most Republicans in Olympia have voiced opposition to any tax increases, instead favoring cuts and reforms to balance the budget. Cuts and reforms are badly needed, and the discussion needs to be put out front, but cuts and reforms won’t solve the current debt crisis, not just because it is politically infeasible in a “short session” but because it requires some degree of planning and time to execute the cuts and reforms if they are to be meaningful, worthwhile and lasting.
What the business community needs is a resolution of the deficit issue. The uncertainty in the business community caused by the national debt debate is only compounded by having our own state embroiled in a budget deficit war. The business community needs the legislature to stop looking to business owners as the deep pocket for revenue and instead find a reasonable compromise and enact a budget that will provide stability and assurance that will allow business owners to do what they do best, conduct business and drive the economy through employment and sales, not taxes.
Now for the fun stuff …..Jon Yamashita celebrating his big win over Clark County’s Finest……Vanessa DuPlessie appearing by phone ….. Newt Rumble explaining the vagaries of Section 409(a) ….. Joe Pauletto espousing the beauty of the Tatoosh Range ….. Dean Sutherland wowing the crowd and leading the tour one more time.. …..Heidi Bixby getting the word out and sharing the wealth one penny at a time…..Sharif Burdzik representing Riverview and his class very well…..Jo England filling in for Michael Holt but leaving out the roller rink stories……Ralph Stevens joining the home team…..Kurt Rylander making a discussion of patents and intellectual property NOT boring……Have a great weekend and Happy Birthday to my Valentine girl.
